Asahi Breweries

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Assignment 2

Asahi Breweries Case Analysis

Anonymous Student #2

Professor John Stockmyer

MKT517 WEB/Tuesdays 7:00-9:30

Asahi Breweries
(Dry Beer Implementation)
Asahi Breweries, Ltd. has been in the Japanese beer market since its inception in 1949 where it originated through the post-war breakup of beer conglomerate Dai Nippon, which at the time had a 75% market share. The only other existing Japanese beer company prior to the post-war era was Kirin, holding the remaining 25% market share. Asahi is one of four main beer manufacturers along with its competitors; Kirin, Sapporo and Suntory companies. Kirin, being the oldest and largest company of
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With the direction of its strong leadership and strategic vision, Asahi’s management and workers were willing to follow and implement change by going against conventional wisdom and positioning the company in 1987 with an overall market share of 12% and projected increase of 23% through 1990. Included in this projection, was the latest Asahi product development, “Super Dry” beer, which at first, Higuchi was reluctant to introduce into the market so soon after the release of Asahi Draft, but after tasting the product himself he decided to market the product resulting in a 33% sales increase in 1987. Higuchi now proposes an investment plan to increase brewing and packaging capacity by 30% at a cost of 230 billion yen over two years, 1989 -1990.
Lager beer has traditionally been the product of choice for most of the pre and post WWII era consumers, mainly competitor Kirin’s customer base, but that segment has diminished resulting in a younger generation of beer drinkers preferring a variety of products including draft and dry beers. This has been proven through consumer research and taste tasting trials. It should not to be presumed that lager beer is obsolete has demonstrated by Kirin’s dominance of that market segment from the 1988
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